The S&P 500 eked out a gain of 2.72 points, to finish at 1,692.09, closing at a fresh record high. But tech-heavy Nasdaq declined 23.67 points to end at 3,587.61. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, fell below 13.

For the week, the Dow rose 0.51 percent, the S&P climbed 0.71 percent, while the Nasdaq fell 0.35 percent. Bank of America was the best weekly performer on the Dow, while Microsoft plunged nearly 12 percent.

And for the week, energy led the key S&P sector gainers, while techs lagged.

Google and Microsoft tumbled after both tech giants disappointed the market after the closing bell Thursday with quarterly earnings and revenue that fell well below Wall Street expectations. At least eight brokerages slashed their price targets on Google, while seven cut their price targets on Microsoft.

Also among techs Advanced Micro Devices plunged more than 10 percent to lead the S&P 500 laggards after the chipmaker said its gross margins would fall, even as the company forecast better-than-expected revenue growth in the third quarter. Analysts were mixed on the stock: at least five brokerages raised their price targets on the company, while Credit Suisse and Morgan Stanley lowered their ratings.

Intuitive Surgical slumped after the maker of the da Vinci surgical robots slashed its 2013 revenue guidance and added the FDA had issued a warning letter after a facilities inspection. The company now expects 2013 revenue to be between flat and up 7 percent, sharply below previous expectations for a gain of between 16 percent and 19 percent.

Offsetting the losses in the tech sector, General Electric jumped to lead the Dow gainers after the conglomerate posted earnings that edged past expectations by a penny a share.

Honeywell edged higher after the diversified manufacturer posted better-than-expected earnings and lifted the low end of its 2013 outlook. And Schlumberger rallied after the oilfield services company topped earnings expectations as drilling activity outside North America touched a 30-year high.

So far, one-fifth of S&P 500 companies have reported quarterly results, with 65 percent of companies posting earnings above estimates, while 51 percent missing expectations, according to the latest data from Thomson Reuters. If all remaining companies report earnings in line with forecasts, earnings will be up 2.9 percent from last year's second quarter.

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Barry Knapp, head of equity portfolio strategy at Barclays noted that domestically orientated U.S. stocks have outperformed this quarter.

"This quarter, domestic revenues are starting to go up, which makes perfect sense given those stocks have been telling you that for six months. Companies with foreign-derived revenues remain under pressure," he said.

The Dow and the S&P set fresh intraday highs on Thursday, after Federal Reserve Chairman Ben Bernanke reiterated his commitment to easy monetary policy, in his second day of testimony before lawmakers.

Digital coupon provider RetailMeNot surged more than 30 percent in its market debut on the Nasdaq, under the ticker symbol "SALE," valuing the company at about $1.41 billion. The offering of 9.1 million shares was priced at $21 per share, the midpoint of the expected range, raising $191.1 million.

Beyond the U.S., markets will also watch a meeting of G-20 finance ministers in Moscow on Friday and Saturday to see if global policy makers can do anything further to calm recent volatility and boost global growth.

Treasury Secretary Jack Lew will be in attendance. Ahead of the meeting, Lew said the U.S.was once more a "source of strength" in the global economy.

"The U.S. is again a source of strength in the world economy, only five years after it was the center of a global crisis. This has not happened by accident," said Lew in an opinion piece published by the Financial Times. "In many parts of the world, such as Europe, growth is too weak to drive job creation, and it is critical to take steps to bolster private hiring."

Meanwhile, the Nikkei fell from a two-month peak on Friday, as investors unwound long positions in the futures and cash market ahead of upper house elections over the weekend. Other Asian stocks also reversed gains, with the Shanghai Composite easing over 1.5 percent and Australia's S&P ASX 200 index retreating further from the 5,000 mark.